Hotel Front Office Management, 3rd Edition

262 CHAPTER 10: NIGHT AUDITFigure 10-1. The night auditor provides a financial check on guest folios and departmentalactivities. (Photo courtesy of Lincoln Plaza Hotel & Conference Center, Reading,Pennsylvania.)compasses not only the mechanical proofing of totals of charges and payments but thefurther review of account activity by management. The front office manager will be ableto monitor the credit activity of guests, project daily cash flow from room sales, andmonitor projected and actual sales for the various departments.Learning the process of the night audit can provide valuable information for someonewho plans to continue in the hotel industry. It will also provide the necessary objectiveoverview to evaluate the hotel’s financial activity. Students will become aware of the roleof the general manager, as the night audit allows a review of all the financial activity thattakes places in a hotel in one day. Based on that review, the general manager must determinehow it should be adapted to meet the expenses and profit goals for the accountingperiod. It also allows the general manager to see if marketing plans and operationalactivities have accomplished their stated profit goals. The night audit provides insightinto how each department must be monitored to produce an acceptable income statement.It pulls together the plans and operations of a hotel on a daily basis, not just at the endTLFeBOOK